What an exciting time to buy a house! You just turned 30, got a new job, and feel ready to take the next step of your life. However, you might be concerned that the new job that made buying your first home more affordable could risk your chance of getting a loan.
Many first-time buyers are just getting their life started in their career, but relocating for a new job can be difficult when searching for a mortgage. Having a new job might make qualifying for a mortgage a little more difficult, but it does not automatically disqualify you.
If you’re thinking about accepting a new job or recently moved positions within the same industry, it won’t have too much impact on your chances of being approved for a mortgage.
Employment is not just your job history
You don’t always need years and years of work experience to get your mortgage approved. Lenders want to know you have a stability income that is ongoing, for at least the next three years. Jobs that increase your income and/or job level in a field where you already proven yourself shouldn’t raise a red flag.
When to be Careful
Job changes that make your income less predictable might raise more red flags. If you left a steady job as a paramedic to become a lead singer in a band, your bank might give you a “What in the world?” look. That doesn’t mean you can never a buy a house if you follow your passion, but a lender will want to see at least two years of reliable singing career income on a mortgage application.
Believe it or not, your work history might make you decide to change loan types. For instance, getting a FHA loan with less than two years employment can sometimes be easier than qualifying for another loan type.
Below is a breakdown of what each loan type requires:
- Conventional: Two years of work related history.
- FHA: Two years of related history. Need to be at current job 6 months if applicant has employment gaps.
- VA loans: Two years or relevant schooling or military service. If active military, must be more than 12 months from release date.
- USDA: No minimum in current position; prove two years of work or related history.
Of course, there some cases where job changes can delay your mortgage loan, but it won’t automatically complicate your ability to get a home loan. Make sure to let your lender know of changes and promptly provide any document they might request. Remember, if you have already secured your home loan and accepted an offer on a house, don’t take a new job before your closing!
If you want a full team of Mortgage Professionals to help your decision on choosing the best loan option for you, we’re happy to help! Please don’t hesitate to reach out to us at 770-552-1000. We look forward to hearing from you!